Brazil’s Eletrobras says SEC enforcement unit requested information

FILE PHOTO: The logo for Eletrobras, a Brazilian electric utilities company, is displayed on a screen on the floor at the NYSE in New York
FILE PHOTO: The logo for Eletrobras, a Brazilian electric utilities company, is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 9, 2019. REUTERS/Brendan McDermid

April 30, 2021

SAO PAULO (Reuters) – Brazilian state-controlled power company Eletrobras said Securities and Exchange Commission enforcement decision has requested information about some compulsory loans granted by industrial electricity users, without specifying the potential issues.

More than 60 years ago, Brazil’s government forced industrial companies to finance the expansion of the country’s power sector, promising to pay back the loans.

However, payments have been constantly postponed and the government said later it could be made in Eletrobras shares, creating a legal battle.

Eletrobras also said it will delay the filing of its form 20-F, initially expected April 30, to review its 2018 and 2019 financial statements to better reflect its employee retirement plan. The company does not expect meaningful changes.

Eletrobras expects to deliver the 20-f by May 15.

(Reporting by Carolina Mandl and Luciano Costa; Editing by Chris Reese and Cynthia Osterman)